UPDATE 1-Goldman Sachs to advise Spain on Bankia stake sale - FROB

By Jesús Aguado

MADRID Feb 14 Spain's bank rescue fund FROB
said on Friday it chose Goldman Sachs to advise it on the sale
of part of the government's controlling stake in nationalised
lender Bankia.

The government is taking steps to start selling part of its
68 percent holding in Bankia, but will maintain control. Economy
Minister Luis de Guindos told Reuters this week that small
stakes could be sold during the year before a bigger sale in the
medium-term.

Bankia was Spain's biggest bailed-out bank, at the height of
a deep financial crisis that almost sent the country into
default, and new private investment in the lender will help
cement a Spanish financial and economic turnaround.

Bankia took 18 billion euros out of a 41 billion euro
European-financed rescue of Spain's financial system, and
returned to profit last year after a record loss of 19.2 billion
euros in 2012.

In a statement, the FROB said seven investment banks had
submitted bids for the advisory job.

Several Spanish banks - including Santander and
Popular - have publicly expressed their interest in
participating as bookrunners if FROB decides to place Bankia
shares in the market.

Bankia President Jose Ignacio Goirigolzarri said recently
that investors were interested in buying into the bank.

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